Singapore’s retail sector is expected to experience a slowdown in growth, according to RHB Bank’s latest Global Economics and Market Strategy Report. The bank maintains its 2026 retail sales growth projection at 3.0%, following a 3.1% expansion year-to-date. However, it anticipates a moderation to 2.6% in 2027 due to factors such as elevated energy costs, softer regional tourism demand, and cautious consumer sentiment.
Retail sales in Singapore rose by 1.7% year-on-year in September, a continuation from August’s 0.8% growth. This figure, however, fell short of Bloomberg’s forecast of 2.2% and RHB’s own estimate of 2.8%. Excluding motor vehicles, retail sales increased by 2.5% year-on-year, compared to a 1.7% gain in August.
Barnabas Gan, RHB’s Group Chief Economist and Head of Market Research, highlighted the challenges facing the retail sector. “The retail activity is expected to moderate in the medium term,” he noted, pointing to the impact of external economic pressures on household spending.
The report underscores the need for businesses to adapt to changing consumer behaviours and economic conditions. As Singapore navigates these challenges, the retail sector’s performance will be closely watched as an indicator of broader economic health. Looking ahead, the moderation in growth could influence strategic decisions within the industry.
